Vale S.a. · BMFBOVESPA:VALE3
Vale — Corporate Update (June 2019)
30 slides from Vale's corporate update, Jun 10, 2019
Slide 1: Forward-looking statements and cautionary notes
2 “This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove corre
Slide 2: Message from the CEO
3 Message from the CEO Dear Sirs, Dear all, We appreciate the opportunity to engage in this initiative as we are committed to working together to ensure that best practice standards continue to be developed and applied in the mining industry. Vale is going through a critical moment that has created
Slide 3: Message from the CEO
4 Message from the CEO Vale is supporting, with complete transparency, the investigation of the causes of the tragedy. There are ongoing investigations being conducted by several Brazilian governmental authorities, by the independent extraordinary committee created by Vale’s Board of Directors, and
Slide 4: 24/7 Geotechnical Monitoring Center
5 24/7 Geotechnical Monitoring Center Implementation based on high technical standards • Data gathering from 25 structures, of which, Forquilha III and IV, Doutor, 7B, Capitão do Mato and Campo Grande already have live monitoring equipment • 24 specialists, on shift rotation, are responsible for mon
Slide 5: Technological investment in tailing dam monitoring
6 Technological investment in tailing dam monitoring different points in the dams Satellite and drone imagery to support conservation states and ground displacement Radars ensure fast response and millimetric precision Geophones measure dam’s response to seismic activity Acquisition of new piezomete
Slide 6: Overview of emergency levels of geotechnical structures
7 Overview of emergency levels of geotechnical structures Definition Vale’s structures 0 • 80 geotechnical structures with renewed Stability Condition Declarations (DCE) Level 0 Normal situation, regular monitoring on March 31 , 2019 st • 1 • • • • • • Pontal system Campo Grande Doutor Marés 2 Capit
Slide 7: Emergency evacuation drills and siren
8 Emergency evacuation drills and siren The siren drive is part of the emergency plan for mining dams following requirements of the Brazilian law protocols. In case of level 1 and 2, the siren has the specific function of alerting the population to evacuate the Self-rescue Zone (ZAS). From level 2 t
Slide 8: What is a dam?
9 What is a dam? Dams are structures designed by engineers and used as a reservoir for the containment and accumulation of liquid substances or mixtures of liquids and solids from ore processing. The main ones used by Vale are the downstream and upstream construction methods Downstream Upstream The
Slide 9: Understanding Vale's upstream dam de-characterization process
10 Understanding Vale’s upstream dam de-characterization process • Introducing the new de-characterization schedule to the competent authorities on March 22nd, 2019 • Vale’s process to expedite de-characterization of nine iron ore upstream dams in Brazil is progressing according to the new schedule
Slide 10: What does de-characterization mean?
11 What does de-characterization mean? Background Dam de-characterization is a technical term given to an ensemble of engineering procedures that seek to definitely shut down a structure According to Article 23.291 issued on February 25th, 2019, with Dam Safety Policy provisions for MG, it is the pr
Slide 11: Where are the nine iron ore upstream dams to be de-characterized?
12 Where are the nine iron ore upstream dams that will be de-characterized? Minas Gerais State (MG), Brazil • • • 8B dam (Nova Lima-MG) B3/B4 dam (Nova Lima-MG) Fernandinho dam (on the border between Nova Lima and Rio Acima-MG) Forquilha I dam (Ouro Preto-MG) Forquilha II dam (Ouro Preto-MG) Forquil
Slide 12: Vale is accelerating the decommissioning of upstream iron ore dams
13 Vale is accelerating the decommissioning of 9 upstream iron ore dams in Brazil US$ 1.9 billion provisioned for the decommissioning of upstream dams 2 will be completely decommissioned in 3 years 5 will be transformed into downstream prior to decommissioning 2 will have its safety factor increased
Slide 13: Safety and operational excellence are key elements throughout the organization
14 Safety and operational excellence are key elements throughout the organization Safety and Operational Excellence Area reporting to the CEO Business areas and functional units VPS stands for Vale Production System •Responsible for management and safety in operations •Comply with operational excell
Slide 14: Tailings dam classification systems: Brazilian
15 Tailings dam classification systems Brazilian classification system ANM/DNPM nº 70.389/17, Mozambique applies the same high-low classification for potential damage Potential damage Dam volume Population downstream Environmental Socio-economic High Higher than 5M m3 People occasionally transiting
Slide 15: Tailings dam classification systems: Canadian
16 Tailings dam classification systems Canadian classification system Canadian Dam Association - Consequence Classification Ratings for Dams Potential damage Loss of life Environmental and cultural values Infrastructure and economics Extreme More than 100 Major loss Extremely high economic losses af
Slide 16: Tailings dam classification systems: New Caledonia
17 Tailings dam classification systems New Caledonia classification system Décret n° 2015-526 du 12 mai 2015, H = Height, V (volume) in Mm3, Coefficient of class = H2xV0.5 Class of dam Protected population Geometric characteristics A > 30,000 H > 20m C > 1,500 B 3,000 < population < 30,000 H > 10m C
Slide 17: Operated and non-operated tailings dams
18 Operated and non-operated tailings dams Ifaile'd"t'o''be""c"o nfi,rm''e"d"o'r''c"e' rti"fie'"d"a"s'·stable, lcwat"e"g'o"ri"sa"ti'o"n o"f th'is I.M 1 .,."" "'" Owned and operated Owned and or experienced notable stability concerns, as Inac facility, based on identified by an independent engineer (
Slide 18: Operated and non-operated tailings dams
19 Operated and non-operated tailings dams Ifaile'd"t'o'"b"e"c'o"nfirm,'e"d"o'r'c"e.r.t.i"fie'd"as·stable, .... Conceicao, ltabira, Minas Gerais, Brazil Owned and operated IWh,,''"" " Md 1 method categorisatio n of this or experienced notable stability concerns, as facility,based on identified by an
Slide 19: Operated and non-operated tailings dams
20 Operated and non-operated tailings dams Ifaile'd"t'o'"b"e"c'o"nfirm,'e"d"o'r'c"e.r.t.i"fie'd"as·stable, .... Manganes Azul, Parauapebas, Para, Brazil Owned and operated IWh,,''"" " Md 1 method categorisatio n of this or experienced notable stability concerns, as facility,based on identified by an
Slide 20: Operated and non-operated tailings dams
21 Operated and non-operated tailings dams Ifaile'd"t'o'"b"e"c'o"nfirm,'e"d"o'r'c"e.r.t.i"fie'd"as·stable, .... Urucum,Corumba, Mato Grosso do Sui, Owned and operated IWh,,''"" " Md 1 method categorisatio n of this or experienced notable stability concerns, as facility,based on identified by an inde
Slide 21: Operated and non-operated tailings dams
22 Operated and non-operated tailings dams IWh",'.'"" Owned and o Owned and Active Ifaile'd"t'o'"b"e"c"o·nfirm"e'd'"o'r"c'e'rt;f;i,e;d"'a"s"sta·ble, 1 ,..,. categorisatio nh oMf thdis or experienced notable stability concerns, as 1..,., facility,based on identified by an independent engineer (even c
Slide 22: Operated and non-operated tailings dams
23 Operated and non-operated tailings dams Ifaile'd"t'o'"b"e"c'o"nfirm,'e"d"o'r'c"e.r.t.i"fie'd"as·stable, .... Copper Cliff,Ontario,Canada Owned and operated IWh,,''"" " Md 1 method categorisatio n of this or experienced notable stability concerns, as facility,based on identified by an independent
Slide 23: Operated and non-operated tailings dams
24 Operated and non-operated tailings dams Ifaile'd"t'o'"b"e"c'o"nfirm,'e"d"o'r'c"e.r.t.i"fie'd"as·stable, .... Oriximina, Para, Brazil Non-operated Joint Venture IWh,,''"" " Md 1 method categorisatio n of this or experienced notable stability concerns, as facility,based on identified by an independ
Slide 24: Operated and non-operated tailings dams: interpretation notes
25 Operated and non-operated tailings dams The interpretation of the question presented in the last column is the following: Since the answer depends on factors including local legislation that are not necessarily tied to best practice, a “Yes” answer may not indicate heightened risk. Stability conc
Slide 25: Further information on stability reports
26 Further infonnation on stability reports Concei9ao, ltabira, Minas Gerais, Brazil Yes 2010 and 2011it didn't receive DCE (Stability Condition Statement) for Dique 1A (internal that was part of the structure but it doesn't exist anymore (Source: BOA (FEAM - State Agency Minas Gerais Data System).
Slide 26: Further information on stability reports
27 Further infonnation on stability reports Pico, ltabirito, Minas Gerais, Brazil
Slide 27: Further information on stability reports
28 Further infonnation on stability reports - identified by an independent ngineer (even if later certified as Ownership firm). 2009, tly 1t s Gerais Gerais, Brazil Para, m Safety e in the ectify urther n is ,we n the ),we are n the dam shell Has this facility, at any point in its history, failed to
Slide 28: Vale has concluded an important step to contain tailings in Brumadinho
29 Vale has concluded an important step to contain tailings and treat water in Brumadinho Follow the link below to watch the video regarding one of Vale's measures to contain tailings https://www.youtube.com/watch?v=mdyvlf9LuBg&feature=youtu.be
Slide 29: Investor Relations contacts
vale.ri@vale.com Tel.: (55 21) 3485-3900 Investor Relations Andre Figueiredo Andre Werner Fernando Mascarenhas Samir Bassil Bruno Siqueira Clarissa Couri Julio Molina Luiza Caetano Renata Capanema Department VALE
Slide 30: Signatures
Table of Contents Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Vale S.A. (Registrant) By: /s/ André Figueiredo Date: June 07, 2019 Director of Inves